A New Model of Economy

This book offers a radical revision of modern economic theory. Its starting point is the existing body of both micro and macro economics, as developed in such textbooks as Economics by Begg, Fischer and Dornbusch and Positive Economics by Lipsey and Chrystal. Following a similar framework to these books, it adjusts the whole range of theory by introducing some new concepts and other earlier ones that have been much neglected in the economic thought of the past century. These are related especially to the fundamental part played by land, in it proper sense of all natural resources available on the earth, the significance of credit, especially through the banking system, and the crucial impact of the method of taxation. The resulting analysis yields a thoroughly revised version of the contemporary model of a capitalist economy, so that a genuine 'third way' is revealed. This is not a mere modification of the present system of absentee ownership confronting a market for labour, with all the attendant evils of unemployment, monopoly and maldistribution of wealth and income. Rather it is a system based upon natural law, exhibiting economic security for all, fair distribution of output and, above all, the opportunity for self-fulfillment through work. The 'new model' draws upon the masters of economic thought from Smith and Ricardo to Marshall, Schumpeter and Keynes, by highlighting concepts often omitted from current studies of their works; such as Ricardo's analysis of scarcity and differential elements of rent, Schumpeter's view of the role of banking and Keynes's hints at a labour theory of value. Indeed this far-reaching revision makes bold advances upon the Marshallian theory of the firm and the Keynesian theory of national income determination, thus providing new insights into both micro and macro theory.

Brian Hodgkinson, after qualifying as a chartered accountant in the City of London, won a scholarship to Balliol College, Oxford where he took a first in Philosophy, Politics and Economics and won the university George Webb Medley Prize in economics. After five years lecturing in the Social Studies School at Sussex University, he became the Head of Economics at Dulwich College and then at St James Schools in London. As the founder editor of the journal British Economics Survey, he kept in touch with applied economics and questions of public policy. At the same time his studies at the School of Economic Science in London introduced him to a radically different approach, which after many years of research, has borne fruit in A New Model of the Economy.